Dow Chemical 2012 Annual Report Download - page 162

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Divestitures:
• On June 17, 2010, Dow sold Styron to an affiliate of Bain Capital Partners. Businesses sold within the
Performance Plastics segment included Styrenics (polystyrene, acrylonitrile butadiene styrene, styrene
acrylonitrile and expandable polystyrene), a global leader in the production of polystyrene resins; Polycarbonate
and Compounds and Blends; and the Company’s 50-percent ownership interest in Americas Styrenics LLC, a
nonconsolidated affiliate; all of which were reported in the Performance Plastics segment through the date of the
divestiture.
• On September 30, 2011, the Company sold its global Polypropylene business to Braskem SA. The transaction did
not include Dow's Polypropylene Licensing and Catalyst business. The Polypropylene business was reported in
the Performance Plastics segment through the date of the divestiture. See Note 5 for additional information on
these divestitures.
Feedstocks and Energy
The Feedstocks and Energy segment includes the following businesses: Chlor-Alkali/Chlor-Vinyl; Energy; Ethylene
Oxide/Ethylene Glycol ("EO/EG"); and Hydrocarbons. The Chlor-Alkali/Chlor-Vinyl business focuses on the production
of chlorine for consumption by downstream Dow derivatives, as well as production, marketing and supply of ethylene
dichloride, vinyl chloride monomer and caustic soda. These products are used for applications such as alumina production,
pulp and paper manufacturing, soaps and detergents, and building and construction. The Energy business supplies power,
steam and other utilities, principally for use in Dow’s global operations. The EO/EG business is the world’s largest
producer of purified ethylene oxide, principally used in Dow’s downstream performance derivatives. Dow is also a key
supplier of ethylene glycol to MEGlobal, a 50:50 joint venture and world leader in the manufacture and marketing of
merchant monoethylene glycol and diethylene glycol. Ethylene glycol is used in polyester fiber, polyethylene terephthalate
for food and beverage container applications, polyester film, and aircraft and runway deicers. The Hydrocarbons business
encompasses the procurement of natural gas liquids and crude oil-based raw materials, as well as the supply of monomers,
principally for use in Dow's global operations. The business regularly sells its by-products and buys and sells products in
order to balance regional production capabilities and derivative requirements. The business also sells products to certain
Dow joint ventures. Also included in the Feedstocks and Energy segment are the results of MEGlobal and a portion of the
results of EQUATE Petrochemical Company K.S.C., The Kuwait Olefins Company K.S.C., and The SCG-Dow Group, all
joint ventures of the Company.
Divestiture:
• On June 17, 2010, Dow sold Styron to an affiliate of Bain Capital Partners. Businesses and products sold within
the Feedstocks and Energy segment included certain styrene monomer assets, which were reported in the
Feedstocks and Energy segment through the date of the divestiture. See Note 5 for additional information on this
divestiture.
Corporate
Corporate includes the results of insurance company operations; results of Ventures (which includes new business
incubation platforms focused on identifying and pursuing new commercial opportunities); Venture Capital; gains and
losses on sales of financial assets; stock-based compensation expense and severance costs; asbestos-related defense and
resolution costs; foreign exchange results; non-business aligned technology licensing and catalyst activities; environmental
operations; enterprise level mega project activities; and certain corporate overhead costs and cost recovery variances not
allocated to the operating segments.
During September 2012, the Company announced it was eliminating its business division structure and moving to a global
business president structure. This organizational change did not result in a modification to the Company's operating segments in
2012.